By Umair Sayed on December 11, 2019
Expert
Question: How to define the tax slabs as defined by the govt. of India, so that Income Tax Amount is auto-calculated for an Employee?

Answer: Here is the specimen on how to define Taxable Salary Slabs in Payroll Period master.

  • From Amount and To Amount: Define Salary Range in these fields
  • Percent Deduction: It will be income tax % which will be deducted from the Employee's taxable salary. As per the standard it is, 5% , 20% and 30%. In this example, we have also included the Education Cess (10%) which is calculated on the Income Tax amount itself.
  • Condition: Where you can specific a condition when this tax slab and income tax % will be applied for that Employee. For example, if you want to create separate slabs based on Gender, you can write a condition as: gender=-"Male" or gender=-"Female"
  • Standard Tax Exemption Amount: The tax exemption amount on the gross salary which is applicable for all the Employees.



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